1
Which country is part of the triad?
(A)
Russia
(B)
France
(C)
Egypt
(D)
South Africa
2
The markets of Australia, Canada, England, Ireland, New Zealand, South Africa, and the
United States comprise the __________ Cluster.
(A)
(B)
(C)
(D)
3
ABC Autos is investigating India as a potential stand-alone attractive market. Which of the
following would be a reason to avoid India?
(A)
Low competition
(B)
High competition
(C)
High growth
(D)
Large market size
4
ABC Autos is investigating India as a potential globally attractive market. Which of the
following would be a reason to avoid India?
(A)
(B)
(C)
(D)
5
Swiss Pharmaceuticals is investigating China as a potential stand-alone attractive market.
Which of the following would be a reason to avoid China?
(A)
High competition
(B)
Low competition
(C)
High growth
(D)
Large market size
6
Swiss Pharmaceuticals is investigating China as a potential globally attractive market.
Which of the following would be a reason to avoid China?
(A)
(B)
(C)
(D)
7
Swiss Pharmaceuticals is considering entering a lead market. It should look for markets
known for their
(A)
demanding customers
(B)
quality products
(C)
innovation
(D)
All of the above
8
Swiss Pharmaceuticals is considering entering a lead market. It should look for markets
known for their
(A)
demanding customers
(B)
high prices
(C)
low prices
(D)
high growth rates
9
Tunetoy Industries is considering entering a lead market. It should look for markets known
for their
(A)
high growth rates
(B)
innovation
(C)
high prices
(D)
economies of scale
10
Tunetoy Industries is considering entering a lead market. Such a market would likely be a
(A)
transitional economy
(B)
developing country
(C)
triad country
(D)
psychically close country
11
Which of the following countries would likely be grouped together for marketing
operations?
(A)
Georgia and Armenia
(B)
India and Pakistan
(C)
France and Germany
(D)
Brazil and Nigeria
12
Psychic distance refers to
(A)
how similar two national markets really are
(B)
how similar managers believe two national markets to be
(C)
how similar two competitors are
(D)
the sum total of differences among markets where a multinational firm operates
13
Which country is part of the triad?
(A)
United States
(B)
Russia
(C)
Iraq
(D)
India
14
A triad country is also a
(A)
developed country
(B)
developing country
(C)
protectionist country
(D)
low-technology country
15
Which country is not part of the triad?
(A)
Belgium
(B)
Brazil
(C)
France
(D)
Japan
16
Markets that serve as major research sites as well as home markets for major global
competitors in an industry are called __________ markets.
(A)
forward
(B)
lead
(C)
must-win
(D)
triad
17
The first stage of the country market selection process uses __________ to discriminate
between countries that represent basic opportunities and those with little or no
opportunity or those with excessive risk.
(A)
microindicators
(B)
macroindicators
(C)
rank ordering of potential target countries
(D)
competitive analysis
18
Microindicators give an indication of
(A)
market size
(B)
disposable income
(C)
political conditions
(D)
perceived need for a product in the market
19
Macroindicators describe
(A)
market segments
(B)
competitor strengths
(C)
a total market
(D)
None of the above
20
Which is not a microindicator of market size?
(A)
Passenger cars
(B)
Steel production
(C)
Per capita income
(D)
Hospitals
21
As a U.S. electronics manufacturing company, which of the following groups would you
contact to determine the competitive structure of the Japanese electronics industry?
(A)
U.S. Chamber of Commerce in Japan
(B)
WTO
(C)
IMF
(D)
None of the above
22
Tunetoy Industries, a U.S. MNC, is considering targeting developing countries. Which of the
following is a true and reason to avoid such markets?
(A)
They are never globally strategic markets
(B)
The psychic distance paradox impedes successful entry
(C)
Remittances decrease spending power in such countries
(D)
None of the above
23
French Bakery Breads is considering entering the Latin American market. The manager in
charge of assessing foreign markets is surprised to see that the region receives a high level
of remittances. What is the implication of remittances to the Latin American market?
(A)
Psychic distance is increased
(B)
Buying power is increased
(C)
Protectionism is likely low
(D)
Protectionism is likely high
24
Tunetoy Industries is considering entering the Egyptian market. The manager in charge of
assessing foreign markets is surprised to see that Egypt receives a high level of
remittances. What is the implication of remittances to the Egyptian market?
(A)
Protectionism is likely low
(B)
Psychic distance is increased
(C)
Buying power is increased
(D)
None of the above
25
Ottawa Sleds is a Canadian company that has recently entered the U.S. market. Its
managers are shocked by how different the U.S. market is from the Canadian market. The
managers are experiencing
(A)
psychic distance
(B)
cultural rebound
(C)
cultural paradox
(D)
psychic distance paradox
26
Taiwan Graphics is a Taiwanese company that has recently entered the Chinese market. Its
managers are shocked by how different the Chinese market is from the Taiwanese market.
The managers are experiencing
(A)
psychic distance
(B)
psychic distance paradox
(C)
cultural rebound
(D)
cultural paradox
27
Tottenham Tartans is a British clothing company that has recently entered the U.S. market.
Its managers are shocked by how different the U.S. market is from the U.K. market. The
managers are experiencing
(A)
cultural paradox
(B)
cultural rebound
(C)
psychic distance
(D)
psychic distance paradox
28
Which of the following is NOT a reason firms exit a host country?
(A)
Debt
(B)
Difficulties in home market
(C)
Political risk in host country
(D)
None of the above
29
^___^ is defined as the process in which a firm expands from its domestic market into new
foreign markets.
30
^___^ is a market advantage relating to brand awareness, sales, and profits that accrues
to the first significant competitor to enter a new market.
31
New firms that jump into global markets virtually from inception are known as ^___^
firms.
32
The ^___^, ^___^, and ^___^ together are known as the triad.
33
Markets that usually serve as major research sites as well as the home markets of major
global competitors in an industry are known as ^___^ markets.
34
Taiwan Graphics is a Taiwanese company that produces software in Chinese. The company
is seeking its first foreign market to enter, and managers at the firm are believers in
psychic distance. Which of the following countries will the firm likely choose first to enter?
(A)
U.S.
(B)
China
(C)
Russia
(D)
There is no way to tell
35
Ottawa Sleds is a Canadian company. Managers at the firm are believers in psychic
distance. Ottawa Sleds is seeking its first foreign market to enter. Which of the following
countries will the firm likely choose first to enter?
(A)
Sweden
(B)
Germany
(C)
USA
(D)
There is no way to tell
36
Taiwan Graphics is considering entering the Philippines. The manager in charge of
assessing foreign markets is surprised to see that the country receives a high level of
remittances. What is the implication of remittances to the Filipino market?
(A)
Buying power is increased
(B)
Psychic distance is increased
(C)
Protectionism is likely low
(D)
FDI in discouraged
37
Swiss Pharmaceuticals is considering entering the Indian market. Which of the following is
the best macroindicator for the firm to look at?
(A)
Number of hospital beds
(B)
Number of physicians
(C)
Number of pharmacies
(D)
Total population
38
Swiss Pharmaceuticals is considering entering the Indian market. Which of the following is
the best macroindicator for the firm to look at?
(A)
Number of physicians
(B)
Number of pharmacies
(C)
Total population
(D)
None of the above is a macroindicator
39
Swiss Pharmaceuticals is considering entering the Indian market. Which of the following is
the best microindicator for the firm to look at?
(A)
Number of physicians
(B)
Total population
(C)
Population growth rate
(D)
None of the above is a microindicator
40
Starbucks is investigating entering a Middle East market with its upscale coffee shops.
Which of the following would be the best macroindicator for the firm to look at?
(A)
Income distribution
(B)
Consumption of Coca-Cola
(C)
Coffee consumption
(D)
None of the above is a macroindicator
41
Starbucks is investigating entering a Middle East market with its upscale coffee shops.
Which of the following would be the best microindicator for the firm to look at?
(A)
Income distribution
(B)
Total population
(C)
Coffee consumption
(D)
None of the above is a microindicator
42
Starbucks is investigating entering a Middle East market with its upscale coffee shops.
Which of the following would be the best macroindicator for the firm to look at?
(A)
Total population
(B)
Tourist arrivals
(C)
Tea consumption
(D)
Number of U.S. franchisers in country
43
Starbucks is investigating entering a Middle East market with its upscale coffee shops.
Which of the following would be the best microindicator for the firm to look at?
(A)
Total population
(B)
Income distribution
(C)
Population growth
(D)
Tourist arrivals
44
Apha Gyms in a U.S. company. Managers at the firm are believers in psychic distance. Alpha
Gyms is seeking its first foreign market to enter. Which of the following countries will the
firm likely choose first to enter?
(A)
Mexico
(B)
Germany
(C)
U.K.
(D)
There is no way to tell
45
The markets of Australia, Canada, England, Ireland, New Zealand, South Africa, and the
United States comprise the ^___^ Cluster.
46
Global companies do not have to monitor lead markets and set up operations there.
(A)
True
(B)
False
47
Canadian retail chains have been very successful in the United States because the markets
are very similar.
(A)
True
(B)
False
48
Psychic distance is the name of the phenomenon when managers believe that success in
the home market is more easily transferable to markets similar to the one in which they
currently compete.
(A)
True
(B)
False
49
Cultural proximity is the name of the phenomenon when managers believe that success in
the home market is more easily transferable to markets similar to the one in which they
currently compete.
(A)
True
(B)
False
50
National proximity is the name of the phenomenon when managers believe that success in
the home market is more easily transferable to markets similar to the one in which they
currently compete.
(A)
True
(B)
False
51
Born global firms show a propensity to enter national markets that are more similar to their
home markets.
(A)
True
(B)
False
52
The psychic distance paradox relates to culture shock sometimes experienced by managers
entering foreign markets that they previously perceived as being similar to their home
markets.
(A)
True
(B)
False
53
Carrefour left the Mexican market because of tough local competition.
(A)
True
(B)
False
54
Avon left the Japanese market because of consumer animosity.
(A)
True
(B)
False
55
Companies may decide to internationalize when some of their key customers move abroad
to pursue international opportunities.
(A)
True
(B)
False
56
Unlike established multinational firms, born globals rarely exhibit a propensity to first enter
national markets that are more similar to their home markets.
(A)
True
(B)
False
57
Similar markets are those that share a common border.
(A)
True
(B)
False
58
For all industries, Japan is a must-win market.
(A)
True
(B)
False
59
Unlike most developing countries, China is one of the most competitive markets in the
world.
(A)
True
(B)
False
60
Two common errors of country screening are ignoring countries that offer good potential
and spending too much time investigating poor prospects.
(A)
True
(B)
False
61
Macroindicators describe the total market in terms of economic, social, geographic, and
political information.
(A)
True
(B)
False
62
BRIC is a trading association including Brazil, Russia, India and China.
(A)
True
(B)
False
63
BRIC is a term referring to Brazil, Russia, Indonesia and China.
(A)
True
(B)
False
64
BRICK is a trading association including Brazil, Russia, India China, and South Korea.
(A)
True
(B)
False
65
MINT is an acronym for Malaysia, Israel, Nicaragua and Thailand.
(A)
True
(B)
False
66
MINT is an acronym for Mexico, Indonesia, Nigeria and Turkey.
(A)
True
(B)
False
67
Social networking site Friendster’ s entry into Asia is an example of opportunistic
internationalization.
(A)
True
(B)
False
68
Major companies such as Xerox and IBM entered the Japanese market due to a higher
growth rate in that market.
(A)
True
(B)
False
69
All firms that entered the Chinese market early now enjoy a first-mover advantage.
(A)
True
(B)
False
70
Most large, internationally active companies began their internationalization by
(A)
responding to government incentives
(B)
opportunistic expansion
(C)
following customers abroad
(D)
exploiting different market growth rates
71
Social networking site Friendster’ s entry into Asia is an example of ___________
internationalization.
(A)
counter-parry
(B)
risk diversification
(C)
opportunistic
(D)
life-cycle
72
In which of these industries do firms commonly follow major customers abroad?
(A)
U.S. professional accounting
(B)
Automobile component suppliers
(C)
Express shippers
(D)
All of the above
73
Companies internationalize for defensive reasons because
(A)
they can learn valuable information that will help them in their home market
(B)
of saturation in the domestic market
(C)
of a need to expand to higher growth rate markets
(D)
of unsolicited orders from overseas customers
74
Cemex, the largest cement producer in Mexico, entered which market first?
(A)
United States
(B)
Canada
(C)
Spain
(D)
Argentina
75
Firms that recognize from the beginning that their customers and competition are
international are called __________ firms.
(A)
internationalized
(B)
globalized
(C)
multi-domestic
(D)
born global
76
Triad nations are very attractive to global companies due to their
(A)
low GDP
(B)
protectionist trade environment
(C)
importance to global competitive battles
(D)
All of the above
77
Triad nations are very attractive to global companies due to their
(A)
low GDP
(B)
protectionist trade environment
(C)
importance to global competitive battles
(D)
None of the above
78
Triad nations are very attractive to global companies due to their
(A)
predictable business environment
(B)
favorable trade and investment climate
(C)
high GDP
(D)
All of the above
79
Opportunistic expansion occurs when a firm becomes involved in foreign markets due to
(A)
market research
(B)
competitive attacks on its home market
(C)
government subsidies
(D)
unsolicited orders from abroad
80
Opportunistic expansion is an internationalization strategy that is adopted
(A)
due to saturation in the domestic markets
(B)
due to the need to expand to higher growth rate markets
(C)
for defensive reasons
(D)
in response to unsolicited orders from overseas customers
81
In order to increase employment opportunities, Singapore offers government incentives to
foreign investors in heavy industries such as steel.
(A)
True
(B)
False
82
Singapore offered government incentives to some foreign universities that established
branch campuses in Singapore.
(A)
True
(B)
False
83
A born global firm is a firm in the first stage of internationalization.
(A)
True
(B)
False
84
Developed economies attract many multinational companies because they account for a
disproportionately large share of the world’s gross national product.
(A)
True
(B)
False
85
Developed economies attract many international companies because they offer a relatively
predictable business environment.
(A)
True
(B)
False
86
In most countries, competition is more intense than it is in the triad.
(A)
True
(B)
False
87
Must-win markets are always developed countries.
(A)
True
(B)
False
88
Lead markets are usually major research sites as well as the home markets of major global
competitors in an industry.
(A)
True
(B)
False
89
When a firm expands from its domestic market into foreign markets, this is
(A)
multi-localization
(B)
internationalization
(C)
internalization
(D)
multinationalism
90
Which country is not a part of the triad?
(A)
U.K.
(B)
United States
(C)
Japan
(D)
Mexico